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The recent collapses of Steward Health Care System and Prospect Medical Holdings, the two biggest hospital bankruptcies in decades, are forcing communities to pay up to fill gaps in patient care and budgets left by the failed chains. State and local governments and community nonprofits have poured in tens of millions of dollars to bail out the bankrupt companies’ hospitals, according to public officials and court records. Steward and Prospect are also delinquent on property taxes and other levies, forcing some communities to hike property taxes. (Biswas, 7/30)

The healthcare sector faces steeper labor expenses and possibly higher borrowing costs because of measures in President Donald Trump’s tax-cut bill that curb federal spending on education. The “One Big Beautiful Bill’s” $1.1 trillion in Medicaid and health insurance exchanges cuts attracted the most attention from healthcare interests, but the law also includes more than $300 billion in cuts to student loan programs. Among other things, it eliminates the Grad PLUS program, which has been the main way advanced health professionals have financed their educations since 2007. (McAuliff, 7/30)

BJC HealthCare, the region's largest health care provider, will stay in-network for patients who have insurance through Cigna Healthcare, both sides announced Wednesday. (Suntrup, 7/30)

Health systems performed fewer surgeries in the second quarter compared to last year, but executives expect volumes to rebound as they forge ahead with plans to acquire and build new outpatient facilities. Community Health Systems, HCA Healthcare, Tenet Healthcare Corp. and Universal Healthcare Services outlined plans in second-quarter earnings calls to expand their networks and add services despite federal funding reductions under the new tax law. (Kacik, 7/30)

With estimates that roughly 15% of all surgeries use robots, an open house Tuesday afternoon at Northwest Health Porter in Valparaiso was a timely opportunity for the public to try out the technology for themselves. The three-part DaVinci 5 Robotic System has been in use at the hospital for the past month. Bryttney VanGoethem of LaPorte rearranged her schedule so she could see it in person. “My grandma is getting surgery done,” she said. “We found out she has colon cancer.” (Jones, 7/30)

AbbVie Inc. is in talks to acquire mental health therapeutics company Gilgamesh Pharmaceuticals in a deal highlighting growing takeover interest in the sector, according to people familiar with the matter. A potential deal could value privately held Gilgamesh at about $1 billion, the people said, asking not to be identified because the information is private. An announcement could be made in the coming weeks, the people said. (Henning, Muller, and Baker, 7/30)

About two years ago, celebrity cosmetic dermatologist Dr. Paul Jarrod Frank noticed a new type of patient arriving at his New York practice. Amid an explosion in the number of Americans losing weight with drugs like Ozempic, he saw a “dramatic spike” in clients experiencing unwelcome side effects. (Holland, 7/30)

Control group outcomes in randomized trials of psilocybin indicated less improvement in depression scores compared with trials of other antidepressants, according to a meta-analysis, suggesting that psilocybin's efficacy may be lower than previously estimated. (Monaco, 7/30)